Iraq announces resumption of Kurdistan oil exports after more than two years of halt
The Iraqi government announced on Thursday an agreement to resume crude oil exports from the Kurdistan Region after a halt of more than two years.
The agreement stipulates that the regional government will immediately begin handing over all oil produced from the region's oil fields to the State Oil Marketing Organization (SOMO) for export, with the quantity delivered not being less than 230,000 barrels per day.
The federal Ministry of Finance will pay the regional government $16 per barrel, according to Agence France-Presse.
The Ministry of Oil announced last February the completion of all procedures for exporting oil produced in the Kurdistan Region via the Turkish port of Ceyhan, following a two-year halt due to disputes between Baghdad and Erbil. At the time, the ministry said in a statement that oil exports would be conducted "in accordance with the mechanisms outlined in the budget law and its amendments, and within Iraq's production ceiling set by OPEC."
Türkiye halted the pipeline in March 2023 after the International Chamber of Commerce ordered Ankara to pay $1.5 billion to Baghdad in compensation for unauthorized exports between 2014 and 2018. link
Member: Mark, Frank26 said last night that Dinar no longer pegged to USD.. Have you similarly ??
MZ: No- But I have heard they are getting ready to put it in its basket and then the dinar is no longer associated with the dollar. That is what they did with the Kuwaiti Dinar.
MZ:I do have some very excited folks on the ground in Iraq who feel they will know all their budget numbers next Tuesday. They havn’t said that they are going to have a new dinar rate then….but they are hopeful they are about to get one.
AFTER AN AIRSTRIKE, DNO TEMPORARILY SUSPENDS PRODUCTION IN KURDISTAN’S OIL FIELDS.
Norwegian oil company DNO announced on Wednesday that it had temporarily halted oil production at the Tawke and Pishkhabur fields in the Zakho Autonomous Region of Iraq, after they were targeted by explosive drones.
The company said in a statement today that it will resume oil production from the two oil fields after assessing the extent of the damage caused by the drone attacks, confirming that the attacks did not result in any casualties.
😊 There is also a very good article that relates to the Oil and Gas situation in Iraq. It is titled “THE PARLIAMENTARY OIL COMMITTEE REVEALS THE REGION’S APPROVAL TO HAND OVER ITS OIL AND REVENUES, AND AN IMPORTANT MEETING WILL BE HELD WITHIN TWO DAYS.”
We know that this meeting has already occurred and await the results of it. If you noticed today, I did not talk about the oil flows or the issues related with Kurdistan. Please do the article and catch up for yourself on this issue.
My take on this Kurdistan Oil issues is this: If we DID NOT see an RV the with current oil flows (which are three times the volume and thus revenues than in 2003) that this is not going to make much difference in speculating of the RV period, is it? 😊
Remember “rentier economy”. I am mostly concerned about this saga when it boils down to whether we will see the passing of the Oil and Gas Law from parliament. I listened to Frank26 intel guru conference call from Tuesday, as I listen to most of these gurus. This is part of my job of the blog to create more clarity in this investment.
Well… anyhow, Frank told his listeners that the HCL was all done. Really?
Why did he say this? The HCL referendum still sits in the cabinet.
It is required by the new Iraq constitution and it has not even gotten to the point of being passed on to parliament for review, discussion and passing. Does Frank even know how the legislative process works in Iraq? There are still many details to work out for this law, but it is looking hopeful.
Maybe however, these recent talks between Baghdad and Kurdistan will solidify these issues and make solid solutions put into the law to prevent such issues arising again in the future. These issues only hurt both parties and there are no winners. Remember that the constitution of 2005 says they have just months to create the pass the referendum.
It has been 20 years already.
Could the US be a bit upset about this? Yes, could this also be a point of contention as to why they have not yet seen their reinstatement? Just asking….. Come ‘on folks lets stop listening and believing all these stupid, fools who are ignorant of what is really going on in Iraq. I see the YouTube and conference calls. They are fools all trying to scam you and make big bucks off of clickity-clicks.
Please keep your prayers coming. They are working and God is going to fulfill his prophecies for the middle east beginning with Iraq and branching out.
APIKUR SPOKESPERSON CALLS FOR SWIFT ACCOUNTABILITY & CLEAR PAYMENT STRUCTURE
(Even under such harassment these contractors want in to Iraq so bad and are willing to put up with it. They know the money to be made…..)
APIKUR demands security guarantees & transparent payments to resume Kurdistan’s oil exports, stressing $1B/month losses. While welcoming Baghdad-Erbil talks, firms await written deals to unlock stalled $400M investments and boost Iraq’s energy sector recovery.
Amid ongoing disruptions in oil exports from the Kurdistan Region and a recent attack on a private oil facility, Col. Myles B. Caggins III, spokesperson for the Association of the Petroleum Industry of Kurdistan (APIKUR), reaffirmed the consortium’s commitment to Iraq but stressed the need for protection, transparency, and swift action by the Iraqi and Kurdish authorities.
Speaking in an exclusive interview with Kurdistan 24, Col. Caggins denounced the recent assault on a private oil production facility, calling for immediate accountability. “We want the perpetrators to be caught. And as the government of Iraq has said, we want them to be punished swiftly and severely,” he stated. He emphasized that APIKUR member companies operate as private entities, and it is the responsibility of the Iraqi federal and Kurdistan Regional Governments (KRG) to ensure their safety.
Trust in Iraqi Investigative Process, but Security Concerns Persist
Referring to statements made by Iraqi Prime Minister Mohammed Shia’ al-Sudani, Caggins noted, “We trust that he will have his team do a quick and detailed investigation.” He added that the unique nature of Iraq’s security environment often results in contradictions: “On one day, you can have an attack in the morning and a deal signed in the afternoon.”
He dismissed any suggestion that the Iraqi government was behind the attack but warned of destabilizing actors: “Some group is doing evil while there are arrangements for new oil deals that are happening between HKN and the central federal government of Iraq.”
Risk Assessment and Continued Investment Amid Political Volatility
APIKUR, comprising eight member companies including HKN, has collectively invested over $10 billion in the Kurdistan Region since February 2005—at the height of Iraq’s civil war. “Our companies have remained committed…through the threats of ISIS,” Caggins said, while acknowledging that each company must independently assess risks daily.
He cautioned that attacks like the recent one are “dangerous and disruptive,” which may prompt companies to temporarily halt operations while reassessing their security posture. Still, he stressed: “There’s risk and then there’s also reward.”
Stalled Exports and Financial Transparency: APIKUR’s Demands
The prolonged closure of the Iraq–Turkey pipeline, now over two years, has cost all stakeholders an estimated $1 billion per month. Caggins revealed that on July 12, APIKUR met with KRG and federal officials to present conditions for resuming exports. Chief among them is a transparent payment mechanism that addresses outstanding dues.
“We need to have transparency for how we will receive payments,” he said, advocating for either direct cash or in-kind payments via barrels of oil, facilitated by SOMO. “We want paper. We want signatures. We want stamps,” Caggins asserted, underlining the need for contractual guarantees.
APIKUR has also proposed an escrow system through an international bank independent of Iraq’s financial institutions to secure payments.
International Price Advantage and Revenue Potential
Caggins emphasized the economic urgency of restoring international sales: “The oil that is sold on the international market is around $70 per barrel, and the oil that is sold locally is only about $30.” He underscored that resumed exports would generate more state revenue, enabling Baghdad to address salary arrears and invest in infrastructure.
“We believe that our business of producing and selling oil should not be caught into the budget disputes between Erbil and Baghdad,” he added.
Pipeline Reopening: A Test of Political Will
Caggins highlighted recent Iraqi and Kurdish statements as signs of progress. Prime Minister Sudani, in a recent meeting with the US embassy and HKN representatives, expressed renewed intent to reopen the Iraq–Turkey pipeline. “We have seen many, many statements. Now we want to see proposals for written agreements,” said Caggins.
He urged all parties to “remain at the table” and finalize a solution that benefits all Iraqis. APIKUR, he added, is optimistic that a resolution may come “in the coming weeks.”
Cooperation With International Stakeholders and Consultant Oversight
APIKUR member companies have engaged with the US and British governments, pressing for a pipeline reopening. “We want to attract more foreign investors,” said Caggins, who affirmed that once agreements are signed, exports can resume within days.
APIKUR supports the involvement of an independent consultant to audit production and costs. “Our companies will fully cooperate… we insist that the calculations are made with the sanctity of our contracts,” he said, noting that Iraq’s federal courts and Ministry of Oil have affirmed the legitimacy of these contracts.
Accepting Article 12: The Path to Implementation
According to Caggins, APIKUR member companies accept Article 12 of Iraq’s federal budget law and have submitted oil export principles accordingly. The group awaits written contracts to activate implementation. “Production is different at each field… What’s important is that our companies agree and accept the budget law,” he explained.
Investment Freeze and Future Outlook
Since the pipeline’s shutdown, companies have had to pause $400 million in planned investments. Once operational, each company will reevaluate new ventures, including drilling and increasing capacity. Caggins stressed that APIKUR supports Iraq’s goal of increasing exports from 4 million to 6 million barrels per day within three years.
“We want to increase the amount of oil that our companies are able to produce… and export that oil to international markets,” he said.
Resolve, Cooperation, and Economic Recovery
Caggins concluded with a call for unity and urgency: “The government’s actions in the past week… have shown a new level of seriousness.” He said elected officials now recognize the need to resume exports to fund salaries and public services. “And if you have money to pay, you need to make more money, and a good way to do that is sell oil internationally.”
